CALGARY, Dec. 21, 2012 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSXV: CEX) is pleased to announce that it has closed the initial
tranche of its previously announced non-brokered private placement (the
"Private Placement") of common shares in the capital of the Company, to be issued on a
"flow-through" basis pursuant to the Income Tax Act (Canada) ("Flow-Through Shares"). In this initial tranche, the Company has issued 9,273,033
Flow-Through Shares, at a price of $0.24 per share, for aggregate gross
proceeds of $2,225,527.92.

Contact expects to use the proceeds of the Private Placement to incur
eligible Canadian Exploration Expenses to fund its ongoing capital
programs prior to December 31, 2013. These qualifying Canadian
Exploration Expense expenditures will be renounced to subscribers
effective December 31, 2012. Contact expects to carry out the closing
of one additional tranche of the Private Placement on or before
December 31, 2012, the proceeds of which are not expected to exceed
$50,000.

The Flow-Through Shares issued in this initial tranche of the Private
Placement are subject to a four-month hold period under applicable
securities laws, which hold period expires on April 22, 2013.

About Contact Exploration Inc.

Contact Exploration Inc. is a public oil and gas company which has a
long-term history of operating in Atlantic Canada and has recently
demonstrated success in Alberta's liquids-rich Montney Formation tight
gas play. For more information, please see the Company's website: www.contactexp.com

ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The use of
any of the words "expect", "anticipate", "continue", "estimate", "may",
"will", "project", "should", "believe", "plans", "intends" and similar
expressions are intended to identify forward-looking information or
statements. In particular, but without limiting the forgoing, this
press release contains statements concerning the anticipated second
closing of the Private Placement and the anticipated use of the
proceeds of the Private Placement.

Forward-looking statements or information are based on a number of
material factors, expectations or assumptions of Contact which have
been used to develop such statements and information but which may
prove to be incorrect. Although Contact believes that the expectations
reflected in these forward-looking statements are reasonable, undue
reliance should not be placed on them because Contact can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very nature
they involve inherent risks and uncertainties. The intended use of the
proceeds of the Private Placement by Contact might change if the board
of directors of the Company determines that it would be in the best
interests of Contact to deploy the proceeds for some other Canadian
Exploration Expense expenditures.

The forward-looking statements contained in this press release are made
as of the date hereof and Contact undertakes no obligations to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.